The Australian Government has announced a 2.4% increase to the Age Pension, Disability Support Pension, and other social security payments, effective August 20, 2025. This increase follows the most current movement of the Consumer Price Index (CPI) to ensure that pension payments are made in accordance with inflation. This increase, though small in nature, provides relief to older Australians and Australian’s with disabilities struggling with rising costs of groceries and utilities.
Changes to Your Pension Payments
Most single pensioners are set to gain an increase of $27.60 alongside their $1,086.50 pension resulting in a new payment of $1,114.10. Couples combined are set to receive a pension payment of $1,673.50 which is an increase of $42.90. Those on the Disability Support Pension will see similar percentage increases. Although 2.4% might appear modest, in the Australian economy, it means receiving additional funds every fortnight which is helpful to fortnightly cash flow.
Dealing with Increasing Costs of Living
Many pensioners have already been feeling the impact of rising costs to rent, electricity, and even the ever-increasing prices of fuel. Although the 2.4% increase won’t entirely offset these surging expenses, it is a step in the right direction. Financial counsellors are recommending the extra funds be directed towards medication, home insurance, or even council rates.
Looking Forward to the New Year
Currently, the next indexation for CPI changes is scheduled for March 2026, meaning there are pension increments planned down the line for pensioners. Looking at current expenditure or seeking tips from Services Australia or local organizations is beneficial. Many community centers provide financial consultations for free, including master classes on pension entitlement maximisation, budget optimization, and household financial management.
Where to Access Support Services
For those dealing with Centrelink forms or require guidance on the increase, the National Information Line at 132 717 or any Services Australia center can be approached for further assistance. Many local community centers and local councils also provide in-person and group workshops tailored for seniors and people with disabilities.
While this increase is unlikely to solve all financial issues, for pensioners trying to keep on pace with the Australian cost-of-living, this is a step in the right direction. Thoughtful planning combined with local community resources will help boost the financial assistance pensioners receive, allowing them to better utilize the funds deposited into their accounts this coming August.
